The government has decided to launch a digital rewards platform of the National Database and Registration Authority (NADRA), called the National Digital Wallet, to promote cashless economy in Pakistan.
Under the proposed plan, 1% of electricity, gas and fuel bills may be linked to the digital rewards. According to sources, the Ministry of Information Technology has made these recommendations to the government.
The plan will be implemented in line with the guidelines to be developed in consultation with all stakeholders.
After getting a nod from the relevant stakeholders, the IT ministry will submit a summary to the Economic Coordination Committee (ECC) and the cabinet for formal approval.
According to the ministry’s recommendations, NADRA will partner with an Electronic Money Institution (EMI) for launching the National Digital Wallet.
The ministry will issue policy directives to the Pakistan Telecommunication Authority (PTA) to link airtime credit (easy load) to digital rewards under the National Digital Wallet.
According to the proposals, 10% of every airtime credit of Rs1,000, ie, Rs100 will be loaded on to the digital wallet. The government has also decided to announce rewards for fuel and utility payments.
As part of the IT ministry’s recommendations, the Ministry of Energy (Power Division) will link 1% of electricity bills to the digital wallet rewards. Similarly, the Ministry of Energy (Petroleum Division) will connect 1% of fuel payments to the digital rewards. It will also link 1% of gas bills.
Digital wallet balance will be made available via OpenAI for fintech apps and services.
NADRA will also determine the charges for maintenance and use of the digital wallet, which will receive support from Karandaaz.
This is one of the initiatives the caretaker government has taken to promote cashless payments.
Read Telecom industry for promoting digitalisation
“The Special Investment Facilitation Council (SIFC) has played an important role in timely approval of policies and projects proposed by the IT ministry,” remarked caretaker IT and Telecom Minister Dr Umar Saif.
Already, the government has facilitated IT companies by allowing them to keep up to 50% of dollar proceeds in their accounts, which resulted in record IT exports in December 2023.
A world-class training programme has also been launched for 200,000 IT graduates from universities.
A key initiative is the upcoming indirect footprint of Payal in Pakistan in partnership with Payoneer in order to facilitate freelancers. With this, the major problem of digital payment gateway for freelancers has been solved.
The government hopes that 10,000 accounts will be opened from February 1 under the pilot project. These accounts of freelancers will be able to receive funds through PayPal.
In an effort to provide facilities to freelancers under one roof, the government has set up 10,000 e-employment centres. The IT minister believes that one million freelancers working in these centres can ramp up IT exports to $10 billion annually.
In addition, all obstacles have been removed for the availability of 5G spectrum. The government is expected to hold a 5G auction in July or August this year.
The caretaker government has also established the Telecommunication Tribunal, which had been a longstanding demand of the telecom sector to settle their disputes.
Pakistan Startup Fund worth Rs2 billion has been launched to help young creators.
The caretaker government has announced Pakistan’s first space policy to provide internet facility in remote areas where cable network is not available. Under this programme, low-orbit satellites will be allowed in the space for internet connectivity.
Published in The Express Tribune, January 21th, 2024.
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